In: Operations Management
Write 1 to 3 paragraphs to discussion this question
What labor standards regarding safety, working conditions, overtime, and the like, should Nike hold foreign factories to: those prevailing in that country, those prevailing in the United States, or something in between?
The question of whether of whether to hold foreign factories to the same standards as domestic factories is difficult. Some students might argue that Nike should require all factories regardless of their location to maintain the same standards when it comes to working conditions, overtime, and so on. Other students, however, may suggest that it would be completely out of line to pay workers the same wages around the world, or require factories to follow expensive safety procedures. Students taking this perspective might argue that doing so could push some factories out of business and leave workers in an even less desirable state. Some students might also argue that if working conditions, wages, and so forth are standardized around the world, there will be little incentive for companies to outsource production, and countries like Indonesia will suffer. Still other students may suggest that some middle ground be found, where wages are in line or slightly above local wages, and some basic safety procedures are required. Students advocating this approach might suggest that Nike invest in the factories to ensure that working conditions are safe.